Segment Information, Geographic Data, and Significant Customers

We have two reportable segments: Illumina’s core operations (Core Illumina) and one segment related to the combined activities of the consolidated VIEs, GRAIL and Helix (Consolidated VIEs). Following the GRAIL deconsolidation on February 28, 2017, the Consolidated VIEs no longer include GRAIL. Prior to 2016, the combined results of operations of the Consolidated VIEs were not material.

We report segment information based on the management approach. This approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of our reportable segments. The CODM allocates resources and assesses the performance of each operating segment using information about its revenue and income (loss) from operations. Based on the information used by the CODM, we have determined its reportable segments as follows:

Core Illumina:

Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a variety of genomic solutions. Core Illumina includes all of our operations, excluding the results of its consolidated VIEs.

Consolidated VIEs:

Helix: Helix was established to enable individuals to explore their genetic information by providing affordable sequencing and database services for consumers through third-party partners, driving the creation of an ecosystem of consumer applications.

GRAIL: GRAIL was created to develop a blood test for early-stage cancer detection. GRAIL was in the early stages of developing this test and as such, had no revenues through the date of deconsolidation.

Management evaluates the performance of our operating segments based upon income (loss) from operations. We do not allocate expenses between segments. Core Illumina sells products and provides services to GRAIL and Helix in accordance with contractual agreements between the entities.

The following table presents the operating performance of each reportable segment (in millions):



	Years Ended
	December 31, 2017			January 1, 2017			January 3, 2016
Revenue:
Core Illumina	$	2,754		$	2,428		$	2,220
Consolidated VIEs	6			—			—
Eliminations	(8		)	(30		)	—
Consolidated revenue	$	2,752		$	2,398		$	2,220

Depreciation and amortization:
Core Illumina	$	153		$	138		$	127
Consolidated VIEs	6			4			—
Eliminations	(3		)	(1		)	—
Consolidated depreciation and amortization	$	156		$	141		$	127

Income (loss) from operations:
Core Illumina	$	696		$	684		$	621
Consolidated VIEs	(92		)	(81		)	(8		)
Eliminations	2			(16		)	—
Consolidated income from operations	$	606		$	587		$	613

Other income (expense), net primarily relate to Core Illumina and we do not allocate income taxes to our segments.

The following table presents the total assets and capital expenditures of each reportable segment (in millions):



	Years Ended
	December 31, 2017			January 1, 2017			January 3, 2016
Total assets:
Core Illumina	$	5,223		$	4,167		$	3,658
Consolidated VIEs	45			180			31
Eliminations	(11		)	(66		)	(1		)
Consolidated total assets	$	5,257		$	4,281		$	3,688

Capital expenditures:
Core Illumina	$	306		$	238		$	142
Consolidated VIEs	4			22			1
Consolidated capital expenditures	$	310		$	260		$	143

The following table represents revenue by geographic area for the years ended December 31, 2017, January 1, 2017, and January 3, 2016 (in millions):



	Years Ended
	December 31, 2017		January 1, 2017		January 3, 2016
United States	$	1,511	$	1,294	$	1,207
Europe	632		553		527
Greater China (a)	292		—		—
Asia-Pacific (a)	222		456		380
Other markets	95		95		106
Total	$	2,752	$	2,398	$	2,220

(a) Revenue for the Greater China region, which includes China, Taiwan, and Hong Kong, became material for the year ended December 31, 2017. Therefore, such revenue is reported separately and the Asia-Pacific region no longer includes the Greater China region. Greater China region revenue is included in the Asia-Pacific region for the years ended January 1, 2017, and January 3, 2016.

Revenue is attributable to geographic area based on the region of destination.

The majority of our revenue consists of sales of consumables and instruments. For the years ended December 31, 2017, January 1, 2017, and January 3, 2016, consumable sales represented 64%, 64%, and 58%, respectively, of total revenue and instrument sales comprised 19%, 20%, and 27%, respectively, of total revenue. Our customers include leading genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, agrigenomics, commercial molecular diagnostic laboratories, and consumer genomics companies. We had no customers that provided more than 10% of total revenue in the years ended December 31, 2017, January 1, 2017, and January 3, 2016.

Net long-lived assets exclude goodwill and other intangible assets since they are not allocated on a geographic basis. We had net long-lived assets, consisting of property and equipment, in the following regions as of December 31, 2017 and January 1, 2017 (in millions):



	December 31, 2017		January 1, 2017
United States	$	828	$	636
Singapore	54		44
United Kingdom	43		28
Other countries	6		5
Total	$	931	$	713